Yesterday it bounced off the MA line. Today it did the same thing.
What is great in the USDCAD? The 100 hour MA.
For the 2nd straight day, the pair tested the 100 hour MA (blue line) and it bounced off the line.
What is also great in this pair, is the highs from earlier today, held below the high from yesterday. So that was great too (from a technical perspective).
When support and resistance levels define themselves like the 100 hour MA did bellow, and the highs did above, it not only defines the range but also defines a break out level for the bulls and the bears.
The buyers remain more in control:
- The price is back higher on the day (closed at 1.3378)
- The price is above the 100 hour MA
- The corrections of the bull move higher could not get to the 38.2% retracement.
Looking at the daily chart below, the price is above the 38.2% of the move down from the 2016 high (at 1.33116).
What is concerning potentially, is the price is testing at topside trend line on the daily chart (and moved above it on Tuesday) but failed on the break. The break of the 38.2% retracement has also not really ignited a buying spree.
The distance between support at the 1.3351 level (100 hour MA) and the high at 1.33967 (call it 1.3400) is getting more and more narrow (the 100 hour MA is moving higher). At some point there should be a push and a run - either to the upside or the downside. The sellers above and buyers below are telling us the "market" is not too sure now.
Of course OPEC and oil prices can provide that push. So pay attention to that for bias clues. Oil futures are trading higher at $49.77, +1.22% (+$0.60) . Today, the price of oil has remained below the $50 level (high $49.81 and low at $49.00).